Thomas Conradt, the former Euro Pacific Capital broker charged with securities fraud for his involvment in an insider-trading scheme, pled guilty Wednesday in a plea deal with prosecutors.
As previously reported, the U.S. Attorney for the Southern District of New York claimed Thomas Conradt and David Weishaus allegedly obtained and traded on the non-public information that IBM was in the process of acquiring Chicago-based SPSS in a $1.2 billion deal in July 2009. They and several co-conspirators profited by over $1 million in the scheme, according to the SEC’s complaint, filed in November.
Their downfall began when Conradt’s roommate Trent Martin—who was arrested in Hong Kong in December—allegedly learned about the proposed acquisition through a friend working for the law firm advising IBM. The associate let slip that the deal was "stressful," according to the complaint. Later, authorities claim Martin talked about the deal to Conradt, as well as Weishaus and others, and they then allegedly made their profitable trades.
In Wednesday’s hearing, Conradt pled guilty to one count of conspiracy to commit securities fraud and two counts of securities fraud, which each carry a 20-year maximum prison sentence and a $5 million fine. Conradt’s sentencing hearing is set for October 3.
Meanwhile, Martin is set to appear before Judge Carter on April 10 and Weishaus is next scheduled to appear before Judge Carter on June 5.